PHILADELPHIA, Jan. 12, 2025 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against PACS Group, Inc. (“PACS” or the “Company”) (NYSE: PACS) on behalf of purchasers of PACS securities between April 8, 2024 through November 21, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired PACS securities during the Class Period may, no later than JANUARY 13, 2025, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net, or CLICK HERE.
Headquartered in Farmington, Utah, PACS operates skilled nursing facilities and post-acute care facilities in the U.S.
According to the lawsuit, throughout the Class Period, Defendants failed to disclose that: (a) PACS inflated its Medicare revenues by misclassifying lower-acuity patients as high-acuity patients that required skilled care in violation of a Covid-era waiver, thereby securing higher reimbursement rates; and (b) that after the expiration of the COVID-era waiver, PACS inflated its revenues by fraudulently billing for unnecessary treatments and for services never provided to patients.
On November 4, 2024, Hindenburg Research published a report alleging that, among other things, PACS misused COVID waivers to inflate Medicare reimbursements, as well as engaging in other revenue practices which misrepresented the Company’s financial health. On this news, PACS’ share price dropped $11.93 per share – 27.8 percent – to close at $31.01 per share on November 4, 2024.
Then, on November 6, 2024, the Company announced that it would delay the release of its third-quarter 2024 financial results due to an investigation by the Company’s Audit Committee into recent allegations concerning its reimbursement and referral practices. PACS also disclosed that it had received civil investigative demands from the federal government regarding these practices. On this news, PACS’ share price dropped $11.45 per share – 38.8 percent – to close at $18.09 per share on November 6, 2024.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Peter Hamner
Berger Montague PC
phamner@bm.net
